Belgium and Switzerland weigh down Liberty Global results

Written by CSI

08/11/18

European cable operator Liberty Global saw record net adds for Virgin Media eclipsed by weakness in Belgium and Switzerland. Video losses have increased though advanced TV platforms now account for over three-quarters of total video customers.

It was once again a mixed picture for Liberty Global, which continues to lose television subscribers and struggle in Switzerland and Belgium, but is enjoying good growth in broadband across its markets and a strong performance of its UK operation.

For the three months ended September 30 2018, video losses widened to 36,700 customers, from 29,100 in the year-ago quarter. Next-generation video penetration (including Horizon TV, Horizon-Lite, TiVo, Virgin TV V6 and Yelo TV) reached 6.7 million in the quarter or 78% of the total cable video base, after 70,000 subscribers were added to the advanced platforms in Q3. It means Liberty Global had just over 8 million video customers left, excluding Ziggo and its operations being sold to Vodafone.

Data products (broadband connections) grew by 24,000 in the quarter and telephony by 40,800.

Deployments of the latest WiFi Connect box increased by 552,000 in Q3, ending the quarter with an installed base of nearly 5.6 million or 61% of broadband subscribers across continuing operations.

The group’s continuing operations counted a total of 26.096 million RGUs, up by 16,800 from June 2018, as growth in the UK market once again offset RGU loss at its Swiss and Belgian divisions.

Net additions of 105,000 were 14% higher than the prior year and represent a record third quarter performance for Virgin Media. This achievement was supported by strong volume growth in both our Project Lightning and legacy footprints, the cable company said. From a product perspective, it said it continues to see the benefits of next-generation V6 set-top box and Hub 3 WiFi router deployments. Virgin Media added 12,000 video homes in the quarter.

"The continued operating and financial momentum at Virgin Media helped fuel our Q3 results,” said CEO Mike Fries. “We also announced a 4.5% average U.K. customer price rise, which should underpin our results in the coming quarters.”

“The Swiss market remains challenging but we have a number of initiatives that we believe will improve performance,” Fries said.

The turnaround plan is underpinned by revamped video products, including the newly launched Horizon 4 platform, a refreshed MySports programming line-up, the launch of 1 Gig broadband speeds and a new and improved MVNO offering.

Switzerland is the first market where Horizon 4 was launched it will be expanded to more markets in the coming years replacing current TV plaftorms.

Poland, Slovakia and CEE DTH fained 17,000 RGUs in Q3, compared to a loss of 5,000 in the prior-year period, mainly driven by stronger video and voice adds in Poland.

Liberty Global reported revenue of $2.96 billion for the three months to 30 September 2018 as it consolidates to a handful of European markets. The company noted that results exclude its subsidiaries in Germany, Hungary, Romania and the Czech Republic that are being sold to Vodafone and are listed as discontinued, as well as its Austrian unit, the sale of which it completed in July. Poland and Slovakia remain continuing CEE operations. The Vodafone deal is expected to close in mid-2019.

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